The earnings call presented a mixed picture with notable improvements in financial metrics and operational efficiencies. However, challenges persist with declining coffee volumes, increased operating expenses, and external pressures from volatile commodity markets.
Company Guidance
During the Farmer Brothers fiscal second quarter 2025 earnings call, management highlighted several positive financial metrics and strategic initiatives. Net sales increased by 6% sequentially to $90 million, while gross margins remained above 43%, marking a 270 basis point improvement year-over-year. Adjusted EBITDA reached $5.9 million, up $3.6 million from the previous year. The company also achieved positive free cash flow for the first time in many years, amounting to $0.5 million. Despite an 8% decrease in overall coffee volumes, Farmer Brothers focused on its Allied products, which comprise about half of its total sales, to protect margins. The company proactively adjusted prices early in fiscal 2025 to navigate volatile commodity markets and remains vigilant about potential trade actions affecting key export markets. Additionally, leadership changes and strategic developments, such as a partnership with Urest and brand rationalization efforts, are expected to drive customer growth and operational efficiencies.
Increased Sales and Gross Margin
Sales increased by 6% compared to the first quarter of the year to $90 million. Gross margins maintained above 43%.
Positive Adjusted EBITDA and Free Cash Flow
The company realized its second straight quarter of positive adjusted EBITDA at $5.9 million and generated positive free cash flow for the first time in many years.
Operational Efficiency and SKU Rationalization
Completed comprehensive SKU rationalization and brand pyramid projects, expected to continue bringing operational efficiencies.
Strategic Partnership and Team Expansion
Formed a partnership with Urest for a new premium coffee program and added Brian Miller as Vice President of Sales to drive business development.
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Farmer Brothers Company (FARM) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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FARM Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Feb 06, 2025
$1.80
$2.18
+21.11%
Nov 07, 2024
$1.83
$2.13
+16.39%
Sep 12, 2024
$2.64
$2.31
-12.50%
May 09, 2024
$3.31
$3.21
-3.02%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Farmer Brothers Company (FARM) report earnings?
Farmer Brothers Company (FARM) is schdueled to report earning on May 08, 2025, TBA Not Confirmed.
What is Farmer Brothers Company (FARM) earnings time?
Farmer Brothers Company (FARM) earnings time is at May 08, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.